HISD names workers accused in bidding scandal

The Houston Independent School District tried to keep secret the names of the employees accused of violating federal E-rate technology bidding and gift-giving rules. The alleged wrongdoing cost taxpayers an $850,000 settlement with the federal government plus tens of millions of dollars in technology equipment and wiring. But Texas Attorney General Greg Abbott’s office has ruled that HISD must reveal the names in response to an open records request from Texas Watchdog. (I had requested the names a bit later when the AG ruling was pending.)

HISD’s new E-rate compliance officer, Richard Patton, called this morning with the names: William Edwards, Steve Kim and Laura Palmer. The employees worked in the technology and information systems department, Patton said, but they are no longer employed by HISD. To be clear, they have not been charged with a crime, but here’s how the U.S. Department of Justice characterized the accusations:

The United States contended that the Houston Independent School District provided false information to the E-Rate program and otherwise violated the program’s requirements by engaging in non-competitive bidding practices for E-Rate contracts. The United States further alleged that school district officials received gratuities from technology vendors, including trips, meals and loans.

The federal E-rate program, which is funded through fees on telephone bills, allows school districts to purchase technology equipment at discounted rates.

As a result of the conflict-of-interest claims, HISD had to pay an $850,000 settlement, and the school board recently adopted new rules for accepting campaign contributions from E-rate vendors.

2 Responses

I don’t know all the ins and outs of the legalities surrounding the issues, but I do know this sounds familiar.

When we purchase a printer, we have to go through an HISD approved vendor. Typically the prices are 50% or more higher than what I would pay walking into Best Buy or another store to buying it. If the point in having approved vendors is so that the prices are competitive and we get “good” deals because of the bulk HISD might buy collectively, we shouldn’t be paying more than Best Buy would charge us!